Parsippany,
N.J. (July 29, 2003) -- For most of us, passing by a
neighborhood with fine country estates, suburban mansions or penthouse
condominiums not only spurs dreams of luxury home ownership, but
...curiosity about the people who actually live in them. Coldwell
Banker Real Estate Corporation (
Coldwell
Banker®) today released a new profile of
million-dollar-plus homeowners culled from a study it conducted of its
top luxury home sales associates who are also considered to be the
world's premier marketers of high-end properties.
The top findings of the Coldwell Banker Luxury Homeowner
Profile are as follows:
- 31% are cash buyers
- 68% are considered "new money"
- The number one profession among these home buyers
is classified as "Large Business Executives"
- 67% are from the "baby boom" generation (between
the ages of 35 and 55)
- 88% of luxury home buyers
are married
- Designer kitchens are the top priority with regard
to luxury-home amenities
- 89% of luxury homebuyers request a four or five
bedroom home
- Approximately half (49%) of luxury homes sold by
Coldwell Banker sales associates have between 4,000 and 6,000 square
feet
The Coldwell Banker Luxury Homeowner Profile offers
additional insight into the professions, lifestyles and financial
wherewithal of luxury home clientele:
Financial
Clout:
Financial clout is the name of the home-buying game among
luxury house hunters. Evidently not as dependent on lower interest
rates to make the move, nearly one-third (31.5%) of buyers paid cash to
purchase their one million dollar plus home. Of those who choose to
take on a mortgage, 17% placed a down payment that was 50% or more than
the price of their new luxury home.
The survey also discovered that despite paying a big price
tag for top-of-the-line homes and amenities, 41% of these luxury
homebuyers still plan on investing more money in the home by doing
major renovations. In terms of negotiating style, the top luxury
homebuyer's tactic was described as "close to the vest, minimum
divulgence" (63%), versus "hardball" (24%) and "money is no object, I
just want it" (13%). Additionally, it seems these homebuyers use these
negotiation tactics successfully to get the best price as the survey
indicated that only six percent actually pay over the asking price.
Career Paths Toward Luxury Home
Pathways
While business executives of large corporations are the
number one profession among luxury homeowners, entrepreneurs who own
their own businesses are at a close second. That could be one reason
why Coldwell Banker sales associates define the wealth of their rich
clientele as "new money" (68%), versus " old" or " inherited money"
(11%). Other top professions (in order) of buyers of million dollar
plus homes were: doctor, banker, lawyer, stockbroker, actor, musician
and inventor.
Demographics
:
Two-thirds of these homeowners are from the " baby boom"
generation (between the ages of 35 and 55), but 28% are moving into
luxury properties as they approach their retirement years (56 years and
older). Only 4% of luxury homeowners are under 34 years of age.
Eighty-eight percent of luxury home purchasers are married, of which
55% have children. About 1 out of 10 are single (6% men; 5% women).
Seven out of 10 luxury homebuyers (72%) come from the same state where
they buy their new home, of which 55% are from the same city.
Twenty-four percent come from out of state, while 3% hail from another
country.
At Home and In
Style:
It is understandable that these luxury homebuyers are looking
for particular lifestyle items and amenities to enjoy - in the comfort
of their own home. Whether cooking for themselves or employing their
own chefs, designer kitchens are the number one priority for luxury
homeowners. Following kitchens, the top five most requested amenities
(in order) are: media/entertainment room with theater-style seating,
wine cellar, tennis courts/basketball courts, indoor pool and
ballroom/cigar room.
Which proverb is true: " Less is more,"
or " bigger is better"? When it comes to number of rooms and square
footage, it seems that size is relative:
Average number of bedrooms a luxury home customer
requests when looking to buy a new home (In order of ranking):
| Rank | # of
Bedrooms | Percentage |
| #1 | 4 to 5
bedrooms | 89% |
| #2 | 3 or less
bedrooms | 5% |
| #3 | 6 to 8
bedrooms | 4% |
| #4 | 9 and up
bedrooms | 2% |
Total square footage averages within the luxury homes that
were sold in the past year through the Coldwell Banker sales associates
polled (In order of ranking):
| Rank | Square
Footage | Percentage |
| #1 | 4,000 to
6,000 | 49% |
| #2 | 2,400 to 3,999
| 37% |
| #3 | Over
6,000 | 12% |
| #4 | Under
2,500 | 2% |
The Coldwell Banker Luxury Home Buyer Survey was
conducted by Coldwell Banker Real Estate Corporation in May 2003 over
the Internet on Zoomerang.com. It polled nearly 200
Coldwell
Banker Previews International® sales associates in
the U.S. who have sold homes valued at $1 million dollars or more in
the past 12 months.
The
Coldwell Banker Previews
International® system has been a world leader in the
marketing of luxury homes since 1933. This luxury home marketing
program has been exclusive to
Coldwell
Banker® affiliates since 1994. In 2002,
Coldwell Banker® sales associates were
involved in the sale of 11,158 properties priced at a million dollars
or more with a total sales volume of $18.9 billion in the $1 million
and above price range.
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